This week, HMRC have announced an extension to the Making Tax Digital software links deadline.
Businesses that have a taxable turnover above the VAT threshold of £85,000 are required to be part of the Making Tax Digital (MTD) scheme by sending VAT returns via MTD-compatible software. This means that it can integrate with HMRC systems to send VAT returns to HMRC. The scheme has been in place for a year now.
Further to this, HMRC stated:
From April 2020, data must be exchanged digitally between all software used by a business for VAT. The information contained with the MTD VAT return is generated by pulling information from the digital records. This information is the 9 boxes required for the VAT return.
This deadline has now been extended to April 2021
Companies now have more time to put in place digital links between all parts of their functional compatible software. This means that all businesses now have until their first VAT return period starting on or after 1st April 2021 to put digital links in place.
We have developed software which allows our users of Retail Accounts to electronically submit their VAT return to HMRC with all the necessary digital links in place.
It downloads the latest obligations from HMRC which are the start / end date and due dates of the period. When the customer processes their VAT return through Retail Accounts, the software automatically sends this to HMRC and a receipt number is returned to Retail Accounts.
Get in touch if you need us to help with this.